Bank Muscat successfully closes $650 million club loan facility

MUSCAT: Bank Muscat, the flagship financial services provider in the Sultanate of Oman, has successfully closed a senior unsecured loan facility of $650 million with a consortium of 20 relationship banks from across the globe. The transaction originally launched for $500 million, received commitments of over $1.2 billion.
The transaction received overwhelming support from the international banking community and was supported by 20 lenders from the GCC, Europe, USA, Asia and Africa. In view of the oversubscription, Bank Muscat decided to scale the facility up to $650 million. The loan facility was closed at favourable financing terms showing a healthy appetite for the bank’s fundraising activities. The facility, which has a 3-year tenor, will be used to refinance the Bank’s existing loan as well as project financing and general corporate financing.
Shaikh Waleed K al Hashar (pictured), Chief Executive Officer, Bank Muscat, said: “The successful closure of this club loan reflects the Sultanate’s growth-oriented economic outlook as well as the confidence of international banks in the country and in Bank Muscat’s strong financials. We value the strong support from our international partners resulting in approximately 2.5 times oversubscription, which further compliments our reputation and brand as a leading bank in the Middle East.”
The senior unsecured loan was facilitated through the bank’s Wholesale Banking Group (WBG) which specialises in fund raising for the Bank (conventional and Islamic) as well as other financial institutions across the emerging markets.